Base price level Current U.S. price level 180 Current South African price level 105 Base rand spot exchange rate 111 Current rand spot exchange rate $ 0.175 Expected annual u.s. Inflation $8.158 7% Expected annual South African inflation SX Expected U.S. one-year interest rate 11% Expected South African one-year interest rate 8 Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively): a. The current ZAR spot rate in USD that would have been forecast by PPP. (Do not round intermediate calculations. Round your answer to 4 decimal places.) ZAR spot rate under PPP 0.1655 b. Using the IFE, the expected ZAR spot rate in USD one year from now. (Do not round intermediate calculations. Round your answer to 4 decimal places.) AN